Wayne promised no CR, page-126

Hi jaygatsby  and all AHZers,

Your post :-

..I am referring to taking an early stake with the intention to hold long term in any unprofitable company likely to need start up capital for a couple of years..

Quite true .. has been since 'time immemorial'  and will continue so - for many a year etc etc etc .. That's the nature of the beast and how Companies are able to grow.

If what Lexcorp says is true, why does the ASX allow companies to continue to raise capital in this way (any company for that matter) when clearly that large initial % stake will always be diluted to a lower % stake.....

Again has been the case 'since time immemorial' whether it be a small -bottom feeder - or a big Corporate. If one buys into a Coy 'big' or 'small' and one wants to keep as close as possible to their original % stake then keep buying - participating in SPPs -Cap Raisings etc. etc -- your choice.
Also when one buys into a Coy or participates in an IPO it is (or should be clearly understood) that there will be a CR -share issue(s) etc  somewhere down the track.  That's the nature of the beast.
Also how do you think Coys can grow without further Cap Raisings --- ???? If a Coy wants to 'take over' another Coy ?????? Think about that... it may need more funds to do so>

Without equitable rights being offered each time is it not a mathematical certainty that a large holders % stake in the business will continue to be less  each time capital is raised?

A true statement  ------ To the best of my knowledge there has never been Investor(s) (or very few) that have kept the same % stake in any Coy they have invested in. Even huge Super Funds may not hold the same % stake  from initial investment. They can however keep purchasing, taking up SPPs and CRs their choice.

Again that is the nature of  the beast.. The ASX have Rules and Regulations but nothing to say 'we will support you with Rules Regs etc so as to keep your original % stake....   It's up to that investor.

I believe it would never work ???????????????...

Its all IMHO  and please DYOR

Keep safe all AHZers

The Phantom GWW